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SB 56

AN ACT ESTABLISHING A PERSONAL INCOME TAX DEDUCTION FOR PUBLIC BENEFIT CHARGES PAID BY TAXPAYERS ON THEIR UTILITY BILLS.

2026 Regular Session Introduced by Anthony Nolan and 1 co-sponsor

Connecticut proposes income tax deduction for utility public benefit charges, reducing state tax revenue while providing relief concentrated among higher-income households.

REF. TO JOINT COMM. ON Finance, Revenue and Bonding
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Bill Summary · SB 56

Legislative bill overview

SB 56 proposes to establish a personal income tax deduction for public benefit charges that appear on utility bills in Connecticut. These charges fund energy efficiency programs, renewable energy development, and low-income ratepayer assistance. The deduction would allow taxpayers to reduce their taxable income by the amount they pay in these public benefit surcharges.

Why is this important

Utility bills in Connecticut include public benefit charges that can represent a meaningful expense for households, particularly lower-income ones. This deduction could provide tax relief to residents who bear these costs, though the fiscal impact on state revenue depends on how many taxpayers benefit and the average charge amounts. The policy raises questions about whether tax deductions are the most equitable way to address utility affordability versus other approaches.

Potential points of contention

  • Revenue impact: The bill would reduce state tax revenue; critics may argue the cost to the state budget outweighs benefits to individual taxpayers, while supporters see it as justified relief
  • Equity concerns: Deductions primarily benefit higher-income taxpayers who have sufficient tax liability to use them; lower-income households may see minimal benefit despite paying the same surcharges
  • Alternative approaches: Questions whether direct bill credits, ratepayer rebates, or enhanced low-income assistance programs would be more efficient and equitable than an income tax deduction

Compiled from official sources — confirm details with the bill’s official record.

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